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Begin New Search Content Type Working Paper Publishing Institution United Nations University Publication Year within 25 Years

151. Does Lack of Innovation and Absorptive Capacity Retard Economic Growth in Africa?

Author:
Steve Onyeiwu
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper reviews the innovative capabilities and absorptive capacities of African countries, and investigates whether they have played significant roles in the region's slow and episodic economic growth. Results from cross-country regressions covering 31 Sub-Saharan African countries suggest that growth in Africa is not simply a question of capital accumulation, fertility rates, aid dependency, and stable macroeconomic environment. It is also about strengthening the capacity of African countries to assimilate and effectively use knowledge and technology. Contrary to the views held by many analysts, the growth of African economies does not depend so much on their ability to innovate, but rather on their capacity to absorb and effectively use new technologies. Beyond technological issues, the paper confirms the stylized facts that the size of the government and political stability are important for the growth performance of African countries.
Topic:
Development, Economics, and Science and Technology
Political Geography:
Africa

152. Globalization Crises, Trade, and Development in Vietnam

Author:
Philip Abbott and Finn Tarp
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Vietnam has been among the most successful East Asian economies, especially in weathering the external shocks of recent globalization crises—the 1997-98 Asian financial crisis and the 2008-09 great recession, financial crisis and collapse of global trade. Its success contradicts its characterization as an example of export-led growth and highlights the role of the state, particularly in maintaining and influencing investment. Examination of economic performance and policy responses shows rising dependence on foreign finance around each crisis, and actions by the government to counteract that dependence and bolster the domestic economy while continuing to restructure the economy toward greater emphasis on the private sector. Growth, employment and poverty alleviation have been maintained at the expense of renewed inflation, larger budget deficits, and currency depreciation. The 'stop-go' nature of present …
Topic:
Development, Economics, Globalization, and International Trade and Finance
Political Geography:
Asia

153. Is Internal Migration Bad for Receiving Urban Centres? Evidence from Brazil, 1995-2000

Author:
Céline Ferré*
Publication Date:
04-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
During the twentieth century, internal migration and urbanization shaped Brazil's economic and social landscape. Cities grew tremendously, while immigration participated in the rapid urbanization process and the redistribution of poverty between rural and urban areas. In 1950, about a third of Brazil's population lived in cities; this figure grew to approximately 80 per cent by the end of the nineteenth century. The Brazilian population redistributed unevenly—some dynamic regions became population magnets, and some neighbourhoods within cities became gateway clusters in which the effects of immigration proved particularly salient. This study asks, has domestic migration to cities been part of a healthy process of economic transition and mobility for the country and its households? Or has it been a perverse trap?
Topic:
Demographics, Migration, and Immigration
Political Geography:
Uganda, Brazil, and Latin America

154. Aid and Growth in Fragile States

Author:
Mark McGillivray and Simon Feeny
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
For many decades the research literature on the country-level impacts of aid sent mixed messages as to whether aid was effective in promoting economic growth. Some empirical studies found evidence of a positive association between aid and recipient country growth (Papanek 1973; Dowling and Hiemenz 1982; Gupta and Islam 1983; Levy 1987, 1988). Other empirical studies either failed to find any association or if they did, found that it was negative (Rahman 1968; Griffin 1970; Gupta 1970; Weisskopf 1972; Voivodas 1973; Mosley 1980; Mosley et al. 1987; and Boone 1996). The second group of studies had support from non-empirical research, with many influential writers providing damning critiques of aid, from both left and right wing perspectives (Friedman 1970; Hayter 1971; Hensma n 1971; Bauer 1981, 1991; and Hancock 1989, among many other writers). The lack of a consensus regarding the country-level impact of aid combined with strong evidence that aid projects were in general effective in attaining their intended outcomes, was described as the 'micro-macro paradox' of aid (Mosley 1986). This paradox was widely accepted in the aid policy and research circles.

155. Analysing the Impact of Natural Hazards in Small Economies: The Caribbean Case

Author:
Martin Heger, Alex Julca, and Oliver Paddison
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses the impact of natural disasters in the Caribbean. The economic impact of natural disasters in the region has been significant, resulting in widespread destruction of the productive economy. This paper presents the main macroeconomic impact of disasters, e.g., a deteriorating fiscal balance, a collapse of growth and a worsening external balance, as a consequence of damage resulting from the event. By making special reference to the small-island developing state nature of many countries in the region, valuable lessons of the impact of such disasters on the capital stock can be learnt, particularly as the interruption of production of goods and services can be particularly devastating in an environment where few large sectors (agriculture, tourism) dominate the economic landscape.
Topic:
Development, Environment, Markets, and Natural Disasters
Political Geography:
Caribbean

156. Approaching a Triumphal Span: How Far Is China Towards its Lewisian Turning Point?

Author:
Fang Cai
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
With the aid of an analytical framework of the Lewis model revised to reflect the experience of China, this paper examines the country's dualistic economic development and its unique characteristics. The paper outlines the major effects of China's growth as achieved during the course of economic reform and the opening-up of the country: the exploitation of the demographic dividend, the realization of comparative advantage, the improvement of total factor productivity, and participation in economic globalization. By predicting the long-term relationship between the labour force demand and supply, the paper reviews the approaching turning point in China's economic development and examines a host of challenges facing the country in sustaining growth.
Topic:
Development and Economics
Political Geography:
China and Asia

157. Assessing Vulnerability Before, During and After a Natural Disaster in Fragile Regions: Case Study of the 2004 Indian Ocean Tsunami in Sri Lanka and Indonesia

Author:
Jörn Birkmann
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Current approaches of measuring vulnerability to natural hazards generally use a rather static perspective that focuses on a single point in time—often before a hazardous event occurs. In contrast, the paper argues that vulnerability assessment should also take into account the changing dynamics during and after a disaster. This paper provides a comparative analysis of the situation in Sri Lanka and Indonesia within the context of the 2004 Indian Ocean tsunami. The author presents concepts for measuring revealed vulnerabilities and methods of assessing the recovery process, and highlights the differing ways in which the tsunami affected the ongoing civil conflicts in both regions.
Topic:
Demographics, Disaster Relief, Environment, and Natural Disasters
Political Geography:
Indonesia, Asia, and Sri Lanka

158. Asset-Based Poverty in Rural Tajikistan: Who Climbs out and Who Falls in?

Author:
Oleksiy Ivaschenko and Cem Mete
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Tajikistan's rural sector has witnessed substantial development since the country began to emerge from civil conflict in 1999. Gross agricultural output increased 64 per cent from 1999 to 2003, and there were significant developments in the agricultural reform agenda. This paper uses the panel component of two surveys conducted in Tajikistan at one-year interval (2003 and 2004) to explore the major determinants of the transition out of/into poverty of rural households. Poverty status is measured in the asset space, thus indicating structural rather than transitory poverty movements. The empirical analysis reveals several interesting findings that are also important from a policy perspective: first, cotton farming seems to have no positive impact on poverty levels, nor on mobility out of poverty. Second, the rate of increase in the share of private farming at the district level had little impact on poverty levels and poverty mobility.
Topic:
Demographics, Development, and Poverty
Political Geography:
Asia and Tajikistan

159. Beyond Industrialization: New Approaches to Development Strategy Based on the Service Sector

Author:
Peter Sheehan
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Industrialization occupies a central place in the rich tapestry of development theory and practice. Although that place has varied over time, many have agreed with Nicholas Kaldor that the kind of economic growth that leads to high real income per capita can only occur through industrialization. This paper argues that it is becoming increasingly difficult for most developing countries to achieve rapid growth through industrialization, and especially through export oriented activities. But the key mechanisms seen as driving the industrial take-off in much of the literature (internal increasing returns, transfer of labour into higher value activities and pecuniary externalities) are alive and well, and are evident in services as well as in industry. Furthermore, China is actively trying to move from a strategy based on industrialization to one based much more on agriculture and services, as the costs of the current pattern of industrialization become prohibitive, and India has demonstrated that rapid growth based primarily on the services sector is possible. Thus more attention needs to be given to strategies based on the expansion of the agricultural and services sectors, and to the ways in which better services in rural areas and higher rural output can combine to achieve rapid growth and improved human welfare in poor countries.
Topic:
Development
Political Geography:
China, India, and Asia

160. China and the Future of the Developing World: The Coming Global-Asian Era and its Consequences

Author:
Jeffrey Henderson
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The rise of China as an economic and political 'driver' of the global economy is likely to be one of the defining moments of world history. Its dynamism and international expansion are on the verge of creating a 'critical disruption' in the global order that has held sway for over 60 years. As such, China is beginning to reshape the world, presaging a new phase of globalization: a 'global-Asian era'. This new era is likely to be distinct from any of the earlier phases of globalization and China's global footprint, in terms of its business, economic and political actions and their geopolitical implications, is likely to be markedly different from what has gone before. This paper offers a framework by which we can begin to understand the coming global-Asian era (GAE) and some of its consequences, particularly as the latter are surfacing in the developing world. Having discussed the nature and dynamics of the GAE, the paper turns to sketch a series of vectors (trade, aid and energy security) along which the GAE is beginning to impact on developing countries. The paper argues that, at least for these vectors, the Chinese-driven GAE is providing opportunities as well as dangers for national development projects. It concludes by briefly speculating on the viability of the GAE.
Topic:
Development, Globalization, International Political Economy, International Trade and Finance, and Oil
Political Geography:
China and Asia

161. China in the World Economy: Dynamic Correlation Analysis of Business Cycles

Author:
Jarko Fidrmuc and Ivana Bátorová
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We analyse the business cycles in China and in selected OECD countries between 1992 and 2006. We show that, although negative correlation dominate s for nearly all countries, we can also see large differences for various frequencies of cyclical developments. On the one hand, nearly all OE CD countries show positive correlations of the very short-run developments that may correspond to intensive supplier linkages. On the other hand, business cycle frequencies (cycles with periods between 1.5 and 8 years) are typically negative. Nevertheless, countries facing a comparably longer history of intensive trading links tend to show also slightly higher correlations of business cycles with China.
Topic:
Economics and International Trade and Finance
Political Geography:
China and Asia

162. China's Development Strategy and Energy Security: Growth, Distribution and Regional Cooperation

Author:
Haider A. Khan
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses both global and regional approaches to solving problems of energy security and ecological imbalance by addressing specifically the problems of China's energy security. China's growing energy dependence has become a major concern for both economic and national security policymakers in that country. The ambitious goal of modernization of the economy along the lines of the other newly industrialized economies (NIEs) of Asia has succeeded only too well, and it is difficult to reorient economic priorities. If examined rigorously, such an economic strategic assumption can be seen to entail the goal of creating further technological capabilities. In particular, China seems to be firmly committed to the creation of a largely self-sustaining innovation system as part of a knowledge-based economy of the future. Such innovation systems, called positive feedback loop innovation systems or POLIS have been created by advanced countries, and NIEs such as South Korea and Taiwan are proceeding to create these as well. But this will add to its energy burden and further dependence on the US as the power which controls the key sea lanes. Only a strategic reorientation to building a self-sustaining POLIS and appropriate regional cooperation institutions can lead to the way out of the current dilemma for China. Fortunately, such a model of POLIS which is distributionally and ecologically sensitive can be built for China and applied strategically to lead towards a sustainable development trajectory.
Topic:
Development, Energy Policy, Environment, and Regional Cooperation
Political Geography:
United States, China, Taiwan, Asia, and South Korea

163. China's Economic Growth: Trajectories and Evolving Institutions

Author:
Jun Zhang
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the institutional reason underlying the change in the trajectory of economic growth in post-reform China, and argues that the trajectory of growth was much more normal during the period of 1978-89 than in the post-1989 era. In the former period, growth was largely induced by equality-generating institutional change in agriculture and the emergence of non-state industrial sector. In the latter period, growth was triggered by the acceleration of capital investments under authoritarian decentralized hierarchy within self-contained regions. Such a growth trajectory accelerates capital deepening, deteriorating total factor productivity and leads to rising regional imbalance. This paper further argues that the change in the trajectory of growth is the outcome of changes in political and inter-governmental fiscal institutions following the 1989 political crisis.
Topic:
Economics, Government, Industrial Policy, and Political Economy
Political Geography:
China and Asia

164. China's Exports in ICT and its Impact on Asian Countries

Author:
Yuqing Xing
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses China's ICT exports grow thin its two major markets Japan and the US from 1992 to 2004. It focuses on ICT products classified in SITC 75, 76 and 77. The empirical results show that Chinese exports had maintained two-digit annual growth during the period. The growth was much higher than the corresponding growth of the overall markets. By 2004, Chinese ICT exports accounted for 26 per cent of the total Japanese imports and 19 per cent of the total imports of the US in ICT products. In addition, the paper investigates whether the rapid growth of Chinese ICT exports crowded out that of other Asian countries: Indonesia, Malaysia, Philippines, Singapore, South Korea and Thailand. The empirical analysis shows that the crowding out effect differs across countries and products. The exports of Singapore and Philippines have been negatively affected by the growth of Chinese exports, but no crowding effect existed at all with Indonesia's exports.
Topic:
International Trade and Finance and Markets
Political Geography:
United States, Japan, China, Indonesia, Malaysia, Asia, South Korea, Philippines, Singapore, and Thailand

165. Comparing Regional Development in China and India

Author:
Yanrui Wu
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Economic growth in China and India has attracted many headlines recently. As a result, the literature comparing the two Asian giants has expanded substantially. This paper adds to the literature by comparing regional growth, disparity and convergence in the two economies. This is the first of its kind. The paper presents a detailed examination of economic growth in the regions of China and India over the past twenty years. It also provides an assessment of regional disparity in the two countries and investigates whether there is any evidence of regional convergence during the period of rapid economic growth. It attempts to identify the sources of regional disparity and hence draw policy implications for economic development in the two countries in the near future.
Topic:
Development
Political Geography:
China, India, and Asia

166. The Determinants of Child Weight and Height in Sri Lanka: A Quantile Regression Approach

Author:
Harsha Aturupane, Anil B. Deolalikar, and Dileni Gunewardena
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Reducing child malnutrition is a key goal of most developing countries. To combat child malnutrition with the right set of interventions, policymakers need to have a better understanding of its economic, social and policy determinants. While there is a large literature that investigates the determinants of child malnutrition, it focuses almost exclusively on mean effects of these determinants. However, socioeconomic background variables and policy interventions may affect child nutrition differently at different points of the conditional nutritional distribution. Using quantile regressions, this paper explores the effect s of variables such as a child's age, sex and birth order; household expenditure per capita; parental schooling; and infrastructure on child weight and height at different points of the conditional distributions of weight and height using data from Sri Lanka's Demographic and Health Survey. Results indicate that OLS estimates can be misleading in predicting the effects of determinants at the lower end of the distributions of weight and height. For example, even though on average Sri Lankan girls are not nutritionally-disadvantaged relative to boys, among children at the highest risk of malnutrition girls are disadvantaged relative to boys. Likewise, although expenditure per capita is associated with strong nutritional improvement on average, it is not a significant determinant of child height or weight at the lower end of the distribution. Similarly, parental education, electricity access, and the availability of piped water have larger effect son child weight and height at the upper quantiles than at the lower quantiles. The policy implication is that general interventions—parental schooling, infrastructure and income growth—are not as effective for children in the lower tail of the conditional weight and height distributions. These children, who are at the highest risk of malnutrition, are likely to need specialized nutritional interventions.
Topic:
Development, Education, and Health
Political Geography:
Asia and Sri Lanka

167. Determinants of State Fragility and Implications for Aid Allocation: An Assessment Based on the Country Indicators for Foreign Policy Project

Author:
David Carment, Stewart Prest, and Yiagadeesen Samy
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper is derived from our ongoing research on fragile states funded by the Canadian International Development Agency (CIDA) to help policymakers and analysts make decisions on where and how to allocate aid, especially in fragile state environments. In order for development assistance to have a measurable and positive impact on fragile states, it is necessary to understand both how and why they become fragile. First, we reconceptualize the meaning of state fragility with equal attention given to the authority, legitimacy and capacity of a state, collectively referred to as ALC. Measures of these ALC components corresponding to six different categories of state performance—economics, governance, security and crime, human development, demographics, and the environment—are collected for all countries for the period 1999-2005. Initial testing of our fragility index shows that fragility is driven by a number of factors, of which the level of development seems to be more important. We complement this analysis by examining state fragility using the ALC framework. Overall, the approach presented has the distinct advantage of identifying country -specific patterns of fragility while at the same time allowing for broad strategically relevant measures of comparative performance that can be of use to policymakers regarding allocation of aid at the sectoral and programming level. Notwithstanding the fact that aid may be allocated for political and strategic reasons, and that fragile states are underfunded, we argue that aid that does flow to fragile states could be better targeted. Specifically, it could strengthen the underlying determinants of fragility by addressing fragile states' distinct and country-specific weaknesses in authority, legitimacy and capacity. Finally, we discuss policy implications of our analysis and directions for future research.
Topic:
Conflict Prevention, Development, and International Political Economy

168. Development Path of China and India and the Challenges for their Sustainable Growth

Author:
Yuefen Li and Bin Zhang
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The segmentation of global manufacturing and services provided China and subsequently India with a golden opportunity to make full use of their absolute advantage—low cost yet educated labour—to integrate into the world economy within a comparatively shorter period of time than some earlier industrialisers. Though international trade functioned as a vent of surplus in view of the narrowness of their domestic markets at the beginning of their economic catch-up, the label of export-led model may not reflect the real picture as imports underwent dramatic increases during their respective growth periods, in particular for China. Foreign direct investment has played a pivotal role in their economic growth and has major presence in international trade and investment in leading sectors of both countries, giving rise to certain special features and weak links for their economic expansion and sustainability of fast economic growth. To maintain more broad-based, fast and balanced growth, it seems that both countries have to redress sectoral imbalances, encourage technology upgrading and cope with future changes in demographic profiles which constituted a trigger to fast economic growth at the time of their respective economic reform.
Topic:
Development and International Trade and Finance
Political Geography:
China, India, and Asia

169. Earnings Mobility in Times of Growth and Decline: Argentina from 1996 to 2003

Author:
Gary S. Fields and María Laura Sánchez Puerta
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In recent years, the economy of Argentina has experienced both rapid economic growth and severe economic decline. In this paper, we use a series of one -year long panels to study who gained the most in pesos when the economy grew and who lost the most in pesos when the economy contracted. To answer these questions, we test two hypotheses both unconditionally and conditionally. The 'divergence of earnings' hypothesis holds that in any given year, the highest earning individuals are those who experienced the largest earnings gains or the smallest earnings losses in pesos. The 'symmetry of gains and losses' hypothesis holds that those groups that gained the most in pesos when the economy grew are those that lost the most in pesos when the economy contracted. Both hypotheses are decisively rejected in the data.
Topic:
Development and Economics
Political Geography:
Argentina and South America

170. Economic Vulnerability and Resilience: Concepts and Measurements

Author:
Lino Briguglio, Gordon Cordina, Stephanie Vella, and Nadia Farrugia
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this paper, economic vulnerability is defined as the exposure of an economy to exogenous shocks, arising out of economic openness, while economic resilience is defined as the policy-induced ability of an economy to withstand or recover from the effects of such shocks. The paper briefly reviews the work already carried out on economic vulnerability and extends the research towards the development of a conceptual and methodological framework for the definition and measurement of economic resilience. Towards this end, the paper proposes an index of economic resilience gauging the adequacy of policy in four broad areas, namely macroeconomic stability, microeconomic market efficiency, good governance and social development.
Topic:
Development and Economics

171. Empowering Women Through Livelihoods Orientated Agricultural Service Provision: A Consideration of Evidence from Southern Africa

Author:
A. J. E. Charman
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper considers the impact of livelihoods oriented agricultural service provision for smallholder farmers on gender relationships and food security. The paper contents that the democratization and liberalization of agricultural services towards participatory, bottom-up approaches, from the early 1990s has brought favourable gender gains to women. The paper examines the background to this shift in agricultural service provision. The resulting gender gains, we argue, should be seen in terms of Sen's notion of entitlements. We examine evidence of these gains from developments and cases in Malawi and Zambia and draw supporting evidence from Zimbabwe and South Africa.
Topic:
Agriculture and Gender Issues
Political Geography:
Africa, South Africa, and Zimbabwe

172. Enforcing Peace Agreements through Commitment Technologies

Author:
S. Mansoob Murshed and Philip Verwimp
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper models the instability of peace agreements, motivated by the empirical regularity with which peace agreements tend to break down following civil war. When war provides opportunities for profit to one side, or when other difficulties such as historical grievances exist, peace may become incentive incompatible. The party that has something to gain from surprise warfare may agree to peace, but will later renege on it. It is shown that the levels of conflict chosen by this group are an increasing function of both grievance and greed, but decreasing in the direct costs of war. Peace is achievable via externally devised mechanisms that enhance commitment to peace. Aid and direct military peacekeeping intervention (sanctions) can reduce or eliminate conflict. These sanctions, however, need to be credible. Finally, the independent provision and finance of international sanctions are considered. When these arrangements yield little benefit to financial sponsors, or are very costly to them, the bite of the sanctions can become ineffective.
Topic:
Conflict Prevention, Economics, Peace Studies, and Treaties and Agreements

173. Enhancing Effective Utilization of Aid in Fragile States

Author:
Sanjeev Gupta
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explores the macroeconomic implications of aid flows in countries with weak institutions. It argues that these countries should take into account their overall macroeconomic position, their capacity to absorb aid at the sectoral and subnational levels, and the strength of their fiscal institutions in deciding how much and how fast to spend aid. These considerations may warrant a gradual use of aid, except when aid is provided for humanitarian purposes. There is some basis for frontloading spending for countries emerging from a conflict, otherwise fragile states should seek to smoothen their spending against the background of aid volatility and uncertainty.
Topic:
Conflict Resolution and Economics

174. Entrepreneurship and Structural Economic Transformation

Author:
Thomas Gries and Wim Naudé
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
A stylized fact of economic development is the structural transformation of countries from traditional, mainly agricultural societies to modern economies dominated by manufacturing and services. In this paper we provide an endogenous growth model to illuminate the role of entrepreneurial start-up firms in structural economic transformation. We follow the Lewis-model's distinction between a traditional and modern sector, and underpin this with micro-foundations. We specify mature and start- up entrepreneurs and make a distinction between survivalist self-employment activities in the traditional sector, and opportunity-driven entrepreneurship in the modern sector. The model shows how opportunity-driven entrepreneurship can drive structural transformation through innovation, provision of intermediate inputs and services (which permits greater specialization in manufacturing), and by increasing employment and productivity in both the modern and traditional sectors.
Topic:
Development and Economics

175. Entrepreneurship in Economic Development

Author:
Wim Naudé
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
What is the role of entrepreneurship in economic development? At a minimum the answer should be able to explain the role of entrepreneurs in the structural transformation of countries from low income, primary-sector based societies into high-income service and technology based societies. More broadly though, it should also be able to explain the role of entrepreneurs in the opposite pole of stagnating development (including conflict) and in high innovation-driven growth. Although economic development lacks a 'general theory' of entrepreneurship, which could encompass a variety of development experiences, much progress has been made in extending the understanding of entrepreneurship in the process of development. This paper surveys the progress with the purpose of distilling the outlines for a more general theory of entrepreneurship in economic development. Entrepreneurship in developing countries remains a relatively under-researched phenomenon, so by surveying the current state of research, and by discussing the role of entrepreneurship in dual economy models of structural transformation and growth, a secondary objective of this paper is to identify avenues for further research. Finally, the policy implications from the economic literature suggest that a case for government support exists, and that this should focus on the quantity, the quality, and the allocation of entrepreneurial ability. Many routinely adopted policies for entrepreneurship, such as provision of credit and education, are shown to have more subtle effects, not all of which are conducive to growth-enhancing entrepreneurship.
Topic:
Development and Economics

176. Export Productivity, Finance, and Economic Growth: Are the Southern Engines of Growth Different?

Author:
Alessandra Guariglia and Amelia U. Santos-Paulino
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Using a panel of 139 countries over the period 1992-2003, we analyse the links between export productivity, economic growth and financial development indicators. We then investigate whether the links observed in China, India and Brazil systematically differ from those observed in other countries in the sample. We find that both GDP per capita and investment generally exert a positive and significant effect on export productivity. Except for Brazil, financial development is not an important determinant of export productivity. Moreover, except for Brazil, export productivity plays a positive effect on growth, and so does financial development for both China and Brazil, but not for India. Finally, in both India and Brazil, FDI is negatively associated with growth.
Topic:
International Trade and Finance
Political Geography:
China, India, Asia, Brazil, and South America

177. Export Productivity and Specialization in China, Brazil, India and South Africa

Author:
Amelia U. Santos-Paulino
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses the patterns of export productivity and trade specialization profiles in the China, Brazil, India and South Africa, and in other regional groupings. In doing so, the investigation calculates a time varying export productivity measure using highly disaggregated product categories. The findings indicate that export productivity is mainly determined by real income and human capital endowments. Importantly, the study reveals significant differences in the export productivity and specialization patterns of countries with comparable per capita income levels. For instance, China's export productivity and implied export sophistication is in line with that of countries with higher per capita incomes, including some OECD industrial economies.
Topic:
Economics and International Trade and Finance
Political Geography:
Africa, China, India, Asia, South Africa, Brazil, and South America

178. Foreign Aid, Infrastructure Development, and Welfare: An Intertemporal Analysis

Author:
Slobodan Djajić
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines the welfare implications of foreign aid within the framework of a two-period, two-country model of international trade. It is up to the donor country to decide what fraction of any given aid package is to be made available for the recipient's immediate, period-one consumption, and what part should be allocated for investment in infrastructure that expands the recipient's production possibilities in period two. The focus of the analysis is on the conditions under which both countries agree or disagree on the manner in which the aid funds should be divided between the two options.
Topic:
Economics and International Trade and Finance

179. Foreign Aid as Prize: Incentives for a Pro-Poor Policy

Author:
Tejashree Sayanak and Sajal Lahiri
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We develop a theoretical model of foreign aid to analyse a method of disbursement of aid which induces the recipient government to follow a more pro-poor policy than it otherwise would do. In our two-period model, aid is given in the second period and the volume of it depends on the level of wellbeing of the target group in the first period. We find that this way of designing aid does increase the welfare of the poor. We also consider the situations where the donor and the recipient governments act simultaneously as well as sequentially, and find that by moving first in a sequential game, the donor country can, under certain conditions, increase the welfare of the poor and its own compared to the case of simultaneous moves.
Topic:
Development, Humanitarian Aid, and International Cooperation

180. Foreign Direct Investment, Domestic Investment, and Economic Growth in China: A Time Series Analysis

Author:
Sumei Tang, E. A. Selvanathan, and S. Selvanathan
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this paper, we investigate the causal link between foreign direct investment (FDI), domestic investment and economic growth in China for the period 1988-2003. Towards this purpose, a multivariate VAR system with error correction model (ECM) and the innovation accounting (variance decomposition and impulse response function analysis) techniques are used. The results show that while there is a bi-directional causality between domestic investment and economic growth, there is only a single-directional causality from FDI to domestic investment and to economic growth. Rather than crowding out domestic investment, FDI is found to be complementary with domestic investment. Thus, FDI has not only assisted in overcoming shortage of capital, it has also stimulated economic growth through complementing domestic investment in China.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
China

181. Foreign Direct Investment from China, India and South Africa in Sub-Saharan Africa: A New or Old Phenomenon?

Author:
John Henley, Stefan Kratzsch, Tamer Tandogan, and Mithat Külür
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The burgeoning literature on outward foreign direct investment from emerging markets has largely focused on analysing the motives of investors as reported by parent companies. This paper, instead, focuses on firm-level investments originating from China, India or South Africa in fifteen host countries in sub-Saharan Africa (SSA). The analysis is based on a sub-set of firms drawn from the overall sample of 1,216 foreign-owned firms participating in the UNIDO Africa Foreign Investor Survey, carried out in 2005. The sample of investments originating from China, India and South Africa is analysed in terms of firm characteristics, past and forecast performance in SSA over three years and management's perception of ongoing business conditions. Comparisons are made with foreign investors from the North. The paper concludes that while investors in SSA from the three countries are primarily using their investment to target specific markets, they are largely operating in different sub-sectors. While there appear to be specific features that firms from a given country of origin share, there are no obvious operating-level features they all share apart from market seeking.
Topic:
International Trade and Finance
Political Geography:
Africa, China, India, Asia, and South Africa

182. Gender and Ethnicity in Post-Conflict Kosovo

Author:
Ira N. Gang, Sumon Kumar Bhaumik, and Myeong-Su Yun
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper examines the comparative economic wellbeing of female- and male-headed households among Serbs and Albanians in post-conflict Kosovo. Evidence from the living standards measurement study (LSMS) household survey, 2001, shows that Serb households, both those headed by women and men, are worse off than Albanians households. We find that female-headed households do not generally suffer more than male-headed households, but there is substantial variation among ethnic groups. While Albanian female-headed households are marginally better-off than Albanian male-headed households, Serb female-headed households have the lowest standard of living.
Topic:
Demographics, Economics, and Gender Issues
Political Geography:
Kosovo, Balkans, and Albania

183. Gender and Informal Sector Analysis in India: Economy Wide Approaches

Author:
Anushree Sinha and Haider Khan
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The main purpose of this paper is to look at the incorporation of gender and the informal sector within a general equilibrium framework for India. Moreover, we clarify some important links between a gender aware informal sector based social accounting matrix (SAM) and general equilibrium models such as the computable general equilibrium (CGE) models including as a special case the fixed price multiplier (FPM) models. In particular, economy wide modelling of gender and the informal sector is facilitated by the use of national level data and constructing the base data set as an SAM. Another important strategy is to conceptualize the economy within gender structures, entailing the recognition of gender relations as an intervening variable in all economic activities.
Topic:
Economics and Gender Issues
Political Geography:
India and Asia

184. Global Growth and Distribution: Are China and India Reshaping the World?

Author:
Dominique van der Mensbrugghe, Maurizio Bussolo, Rafael E. De Hoyos, and Denis Medvedev
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Over the past 20 years, aggregate measures of global inequality have changed little even if significant structural changes have been observed. High growth rates of China and India lifted millions out of poverty, while the stagnation in many African countries caused them to fall behind. Using the World Bank's LINKAGE global general equilibrium model and the newly developed Global Income Distribution Dynamics (GIDD) tool, this paper assesses the distribution and poverty effects of a scenario where these trends continue in the future. Even by anticipating a deceleration, growth in China and India is a key force behind the expected convergence of per capita incomes at the global level. Millions of Chinese and Indian consumers will enter into a rapidly emerging global middle class—a group of people who can afford, and demand access to, the standards of living previously reserved mainly for the residents of developed countries. Notwithstanding these positive developments, fast growth is often characterized by high urbanization and growing demand for skills, both of which result in a widening of income distribution within countries. These opposing distributional effects highlight the importance of analysing global disparities by taking into account—as the GIDD does—income dynamics between and within countries.
Topic:
Development, Economics, and Poverty
Political Geography:
Africa, China, India, and Asia

185. Globalization, Literacy Levels, and Economic Development

Author:
Alok Bhargava
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper estimated models for GDP growth rates, poverty levels, and inequality measures for the period 1990–2000 using data on 54 developing countries at five-yearly intervals. Issues of globalization were investigated by analysing the differential effects of the countries' exports and imports and by postulating trans-logarithmic models that allow for non-linear effects of literacy levels and measures of openness. The main findings were that literacy rates affected growth rates in a quadratic manner and countries with higher literacy were more likely to benefit from globalization. Second, the model for growth rates showed non-linear and differential effects of the export/GDP and import/GDP ratios. Third, the models indicated that population health indicators such as life expectancy were important predictors of GDP growth rates. Fourth, models for poverty measures showed that poverty was not directly affected by globalization indicators. Finally, the model for Gini coefficients indicated significant effects of 'medium' and 'high' skilled labour work force, with higher proportions of high-skilled labour implying greater inequality.
Topic:
Development, Education, International Trade and Finance, and Poverty

186. Globalization and Formal Sector Migration in Brazil

Author:
Jennifer Pamela Poole, Marc-Andreas Muendler, and Ernesto Aguayo-Tellez
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We use novel linked employer–employee data to study the relationship between globalization and formal sector interstate migration for Brazil. We estimate the worker's multichoice migration problem and document that previously unobserved employer covariates are significant predictors associated with migration flows. Our results provide support for the idea that globalization acts on internal migration through the growth of employment opportunities at locations with a high concentration of foreign owned establishments and the stability of employment at exporting establishments. A 1 per cent increase in the concentration of foreign owned establishments at potential migration destinations is associated with a 0.2 percentage point increase in the migration rate, and a 1 per cent increase in exporter employment predicts a 0.2 percentage point reduced probability of migration.
Topic:
Globalization and Migration
Political Geography:
Brazil and South America

187. Globalization and Smallholders: The Adoption, Diffusion, and Welfare Impact of Non-traditional Export Crops in Guatemala

Author:
Benjamin Davis, Calogero Carletto, Angeli Kirk, and Paul Winters
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper uses a duration analysis based on adoption data spanning over 25 years from six communities in the Central Highlands of Guatemala to explore how household characteristics and external trends play into both the adoption and diffusion processes of non-traditional exports among smallholders. Adoption was initially widespread and rapid, which led NTX to be hailed as a pro-poor success, reaching all but the smallest landholders. However, over time more than two-thirds of the adopters eventually dropped out from NTX production. Based on the analysis, NTX production.
Topic:
Agriculture and International Trade and Finance
Political Geography:
South America, Yugoslavia, and Tunisia

188. Growth Oriented Macroeconomic Policies for Small Islands Economies: Lessons from Singapore

Author:
Anis Chowdhury
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Most small island economies or 'microstates' have distinctly different characteristics from larger developing economies. They are more open and vulnerable to external and environmental shocks, resulting in high output volatility. Most of them also suffer from locational disadvantages. Although a few small island economies have succeeded in generating sustained rapid growth and reducing poverty, most have dismal growth performance, resulting in high unemployment and poverty. Although macroeconomic policies play an important role in growth and poverty reduction, there has been very little work on the issue for small island economies or microstates. Most work follows the conventional framework and finds no or very little effectiveness of macroeconomic policies in stabilization. They also concentrate on short-run macroeconomic management with a focus almost entirely on either price stability or external balance. The presumption is that price stability and external balance are prerequisite for sustained rapid growth. This paper aims to provide a critical survey of the extant literature on macroeconomic policies for small island economies in light of the available evidence on their growth performance. Given the high output volatility and its impact on poverty, this paper will argue for a balance between price and output stabilization goals of macroeconomic policy mix. Drawing on the highly successful experience of Singapore, it will also outline a framework for growth promoting, pro-poor macroeconomic policies for small island economies/microstates.
Topic:
Development, Economics, and Government
Political Geography:
Asia, Australia/Pacific, Caribbean, and Singapore

189. How Macroeconomic Instability Lowers Child Survival

Author:
Julie Subervie, Patrick Guillaumont, and Catherine Korachais
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The reduction of child mortality is one of the most universally accepted Millennium Goals. However, there is a significant debate on the means of reaching it and its realism with regard to the situation in most of the least developed countries. The recommendations made for the achievement of this goal are mainly medical ones. However, without underestimating the importance of these measures, in particular vaccinations, it seems increasingly obvious that the rate of reduction of child mortality is mainly determined by the evolution of macroeconomic environment. The influence of per capita income level on mortality is frequently underlined.
Topic:
Development, Health, and Third World

190. Identification of Regional Fundamental Economic Structure (FES) of India: An Input-Output and Field of Influence Approach

Author:
Sudhir K. Thakur
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This study provides an understanding of the Indian regional economy utilizing the fundamental economic structure (FES) approach. The FES construct implies that selected characteristics of an economy will vary predictably with region size, as measured by net state domestic product, population, and total gross output. The big question addressed in this study is if identifiable patterns of relations between various macro aggregates and economic transactions can be revealed via regional input-output tables. Jensen et al. (1988) discuss the tiered, partitioned, and temporal approaches to the identification of FES using input-output tables. This research addresses the following four questions: (1) Does a regional FES exist for the Indian economy during the period 1965? (2) What proportions of the cells are predictable? (3) Can the 1965 regional FES predict 1983-84 table for Punjab economy? (4) Does regional FES manifest an enhanced understanding of the Indian regional structure? Regression analyses are used to identify the FES and non-FES cells for the Indian regional economy. The regional input-output tables for 21 States and Union Territories provide data for the analysis. Analysis reveals regional FES includes primary and secondary sectors as components of FES. This research has extended the notion of FES to include: weak, moderate and strong FES cells.
Topic:
Economics
Political Geography:
India, Asia, and Punjab

191. The Impact of Higher Standards in Patent Protection for Pharmaceutical Industries under the TRIPS Agreement: A Comparative Study of China and India

Author:
Xuan Li
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
A comparative study is undertaken that explores Chinese and Indian pharmaceutical industries under different patent regimes. It is found that relative to India, which had implemented process patent until 2005, China with a product patent regime since 1993 suffers from both lower drug accessibility and availability (the latter is a missing parameter in the literature). Also, China lags behind in both lower R investment and patents filed by Chinese nationals. Based on these findings and associated legal interpretation, we conclude that higher patent protection in China generates negative impacts on the pharmaceutical industries. Thus, governments should utilize TRIPS flexibilities and other regimes like price control to offset the anticompetitive effect in designing patent policies.
Topic:
Treaties and Agreements
Political Geography:
China, India, and Asia

192. The Impact of Reform on Economic Growth in China: A Principal Component Analysis

Author:
Ligang Song and Yu Sheng
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The study decomposes the sources of Chinese growth by first making a distinction between technological progress and technical efficiency in the growth accounting framework, and then identifying a series of reform programmes, such as urbanization, structural change, privatization, liberalization, banking and fiscal system reforms as the key components in institutional innovation which facilitate the improvement of technical efficiency and through which economic growth. These components are then incorporated into the model specification, which is estimated based on a panel dataset by applying the principal component analysis (PCA) to eliminate the multicollinearity problem. The results show that urbanization, liberalization and structural change in the form of industrialization are the most important components in contributing to the improvement of technical efficiency and hence growth, highlighting the importance of government policies aimed at enhancing further urbanization, openness to trade and industrial structural adjustments to sustain the growth momentum in China. The study also found that the potential for further enhancing growth through technical efficiency in China is considerable, which can be realized by deepening state-owned enterprises (SOEs) restructuring, and banking and fiscal system reform.
Topic:
Economics
Political Geography:
China and Asia

193. Individual and Collective Resources and Health in Morocco

Author:
Marie-Claude Martin
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The interaction between available individual and collective resources in the determination of health is largely ignored in the literature on the relationship between poverty and health in developing countries. We analyse the role public resources play in the perception that rural women in Morocco have of their health. These resources are taken to contribute directly and indirectly to the improvement of individual health by, on the one hand, providing a health-promoting environment and, on the other, improving the individual's ability to produce health. The empirical results of multilevel models confirm the expected associations between socioeconomic status, individual vulnerability factors and health. Furthermore, the random part of the model suggests that variation in state of health is also associated with the presence of collective resources. However, the higher the level of women's individual wealth, the less the characteristics of the community in which they live seem to be associated with their health, and the less the potential vulnerability factors seem to constrain their ability to maintain or improve health. Our results suggest that collective investments derived from various areas of activity will be more favourable to improving health, insofar as they are adapted to the initial capacity of women to benefit from them.
Topic:
Gender Issues, Health, and Poverty
Political Geography:
Africa and Morocco

194. Inflation and Financial Development: Evidence from Brazil

Author:
Manoel Bittencourt
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We examine the impact of inflation on financial development in Brazil and the data available permit us to cover the period between 1985 and 2002. The results – based initially on time-series and then on panel time-series data and analysis, and robust for different estimators and financial development measures – suggest that inflation presented deleterious effects on financial development at the time. The main implication of the results is that poor macroeconomic performance has detrimental effects to financial development, a variable that is important for affecting, for example, economic growth and income inequality. Therefore, low and stable inflation, and all that it encompasses, is a necessary first step to achieve a deeper and more active financial sector with all its attached benefits.
Topic:
Economics
Political Geography:
Brazil and South America

195. Innovation Capacity and Economic Development: China and India

Author:
Peilei Fan
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Both China and India, the emerging giants in Asia, have achieved significant economic development in recent years. China has enjoyed a high annual GDP growth rate of 10 per cent and India has achieved an annual GDP growth rate of 6 per cent since 1981. Decomposing China and India's GDP growth from 1981 to 2004 into the three factors' contribution reveals that technology has contributed significantly to both countries' GDP growth, especially in the 1990s. R outputs (high-tech exports, service exports, and certified patents from USPTO) and inputs (R expenditure and human resources) further indicate that both countries have been very committed to R and their output is quite efficient.
Topic:
Government
Political Geography:
China, India, and Asia

196. International Integration and Regional Development in China

Author:
Thomas Gries and Margarete Redlin
Publication Date:
07-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Concerns about the duration of China's growth and hence the question of a permanent significant contribution of China to world economic growth relate, amongst other things, to the problem of reducing regional disparity in China. While China's high average growth is driven by a small number of rapidly developing provinces, the majority of provinces have experienced more moderate development. To obtain broad continous growth it is important to identify the determinants of provincial growth. Therefore, we introduce a stylized model of regional development which is characterized by two pillars: (i) International integration indicated by FDI and/or trade lead to imitation of international technologies, technology spill overs and temporary dynamic scale economies, and (ii) domestic factors indicated by human and real capital available through interregional factor mobility. Using panel data analysis and GMM estimates our empirical analysis supports the predictions from our theoretical model of regional development. Positive and significant coefficients for FDI and trade support the importance of international integration and technology imitation. A negative and significant lagged GDP per capita indicates a catching up, non steady state process across China's provinces. Highly significant human and real capital identifies the importance of these domestic growth restricting factors. However, other potentially important factors like labor or government expenditures are (surprisingly) insignificant or even negative. Further, in contrast to implications from NEG models indicators for urbanization and agglomeration do not contribute significantly.
Topic:
Development
Political Geography:
China and Asia

197. Intra-Household Arrangements and Health Satisfaction: Evidence from Mexico

Author:
Mariano Rojas
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper uses a subjective wellbeing approach to study the role of household arrangements on the health satisfaction of an individual. It also studies the impact of household arrangements on health satisfaction across different income groups, by contrasting two main theories of the family: the altruistic/communitarian theory, which emphasizes altruism within the family, implies that the within-the-household allocation of relevant health satisfaction resources leads towards an egalitarian distribution of health satisfaction, and second, the cooperative bargaining theory according to which the family emerges as the cooperative equilibrium outcome from the unilateral interests of each household member. Thus, each household member takes advantage of their bargaining power to attain an equilibrium that favours their personal interests. According to the latter approach, the intra-household allocation of relevant health satisfaction resources leads to a distribution of health satisfaction that closely follows the distribution of bargaining power.
Topic:
Civil Society and Health
Political Geography:
Mexico

198. Livelihood Risk from HIV in Semi-Arid Tropics of Rural Andhra Pradesh

Author:
B. Valentine Joseph Gandhi, M. Cynthia Serquiña Bantilan, and Devanathan Parthasarathy
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper discusses the livelihood dynamics in the fragile landscape of the semi-arid tropics (SAT) of Andhra Pradesh. SAT is home to the poorest of the poor who live in conditions of persistent drought, subsistence agriculture and poor access to markets. This paper is a case study focusing particularly on labour migration, its role in influencing the health risk behaviour of migrants and in the spread of the HIV epidemic among SAT rural households. The most vulnerable population in these drought-prone regions are the migrant labourers, and their vulnerability is influenced by three major factors—the vulnerability and unstable productivity in the degraded and marginal landscape, the caste system that has traditionally kept them backward and vulnerable, and experiences in the external environment to which they migrate. This study—based on a theoretical framework, whereby livelihood risks lead to health risks, particularly HIV infection—outlines the process that causes a further deterioration of the household and the occurrence of cyclical health risk. The paper calls for a multisectoral approach to tackle the issue of migrant vulnerability, and for interventions with a more migrant-need sensitive approach.
Topic:
Agriculture, Health, and Migration
Political Geography:
Andhra Pradesh

199. Measuring the Competitive Threat from China

Author:
Rhys Jenkins
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In recent years there has been a growing literature that analyses the threat which Chinese exports pose to the exports of other developing countries. The paper provides a critique of the standard measures of export similarity which have been used to estimate the threat from China in these studies. Two alternative indices, the static and the dynamic index of competitive threat, are developed and estimated for 18 developing countries and compared with estimates for the standard measures. It is shown that the latter tend to underestimate the extent to which countries are threatened by China. They also distort both the rankings of countries according to the extent to which they face competition from China and the direction of change in the competitive threat over time.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
China and Asia

200. Measuring the Vulnerability of Subnational Regions

Author:
Mark McGillivray, Wim Naudé, and Stephanié Rossouw
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
A small but growing literature has been concerned about the economic (and environmental) vulnerability on the level of countries. Less attention is paid to the economic vulnerability of different regions within countries. By focusing on the vulnerability of subnational regions, our paper contributes to the small literature on the 'vulnerability of place'. We see the vulnerability of place as being due to vulnerability in various domains, such as economic vulnerability, vulnerability of environment, and governance, demographic and health fragilities. We use a subnational dataset on 354 magisterial districts from South Africa, recognize the potential relevance of measuring vulnerability on a subnational level, and construct a local vulnerability index (LVI) for the various districts. We condition this index on district per capita income and term this a vulnerability intervention index (VII) interpreting this as an indicator of where higher income per capita, often seen in the literature as a measure of resilience, will in itself be unlikely to reduce vulnerability.
Topic:
Security, Demographics, Development, and Economics
Political Geography:
Africa and South Africa